Method and system for electronic distribution of product redemption coupons

ABSTRACT

Provided is a method and system for the electronic distribution of product redemption coupons to remote personal computers located at users&#39; homes. A centrally located repository, such as an online service provider or web site on the Internet, stores packages of coupon data for downloading on demand to the user&#39;s computer. The user may view, select, sort and print desired coupons from the downloaded package. The user&#39;s demographic as well as coupon selection data is provided back to the online service and coupon distributor and issuers for subsequent marketing analysis. The online service can perform subsequent coupon processing on previously downloaded coupon packages such as variation of discount amounts. The online service provider can also determine how many times a particular coupon was viewed. When the printed coupons are presented at a retail store, the discount is provided to the user. Upon redemption by the store via a coupon redeeming center, transaction data is also supplied to the coupon issuers and distributor for integration into marketing analysis. The electronic coupon system is secure due to the inclusion of user-specific identification indicia printed thereon.

BACKGROUND OF THE INVENTION

[0001] The present invention relates to the electronic distribution ofsecure money saving or discount coupons and other marketing incentivesand in particular to use of a centrally located online computer systemfor interactively distributing such coupons to remotely connectedconsumer computers and for collecting user-specific data regardingcoupon usage and user demographic information from the remote computers.

[0002] Millions of consumers regularly use product redemption couponsand realize substantial savings as a result. Significant time is spentclipping and sorting coupons, discarding expired coupons and organizingcurrent coupons for use on shopping trips. Conventional coupondistribution results in significant wasted time due to consumers'attempts to manage their coupon use.

[0003] Coupons are delivered to consumers through a variety of media.The primary coupon distribution is via pull-out sections in newspapers,which are known as free standing inserts (FSIs). This accounts for justover 80% of coupons used. Other methods of distribution include in-storeshelf coupon dispensers, check-out coupons (generally issued based onthe customer's current purchase), register receipt coupons, in-productcoupons, instant peel-bff on-product coupons and direct mail coupons. Inaddition to manufacturers' coupons, consumers use retail store coupons,such as those issued by large retail chains on a weekly basis.

[0004] Some consumers use coupons on a fairly random basis. Theseconsumers tend not to keep coupons for future use, but will reviewcoupons available just prior to shopping to see if any of them coverproducts they plan to buy or if there are any for new or improvedproducts of interest.

[0005] More organized coupon users maintain some form of storage systemto keep coupons for future use. These consumers often clip couponsregularly from all available sources, and often have coupon filingsystems by product category. They will also review their couponsregularly, discarding unused coupons which have expired.

[0006] For most consumers, attempts to maintain an organized coupon fileoften fails. The “bother” and time required to maintain organized couponfiles often results in neglect of those files, even though diligentshoppers know that a consistent significant savings is easily achievableusing coupons.

[0007] The notion of issuing product redemption coupons to consumers wasan innovative idea to entice consumers to try new products in the hopethat, after the first try of a new product at a coupon discounted price,they would become repeat customers at the regular price. Coupons areeffective tools used in launching new products. Manufacturers also findcoupons can shore up flagging sales, help reduce excess inventory or winback consumers' brand loyalty, and so coupons for existing products havebecome customary, so much so that today's consumers have come to expectcoupons. Often, coupon price incentives significantly reduce brandloyalty, and manufacturers must issue more coupons than desired tomaintain market share. Market share has also been impacted by anincrease in the number and variety of competing “no-name” store brands.The competitive nature of the retail industry does not allowmanufacturers to reduce coupon distribution, and in some market sectors,such as cereals, the majority of purchases are made with coupons.

[0008] Consumers are most familiar with FSIs as a source formanufacturers' coupons. In 1993, the coupon redemption rate from FSIswas 2.3%, and gradually declining. The primary factors which keep theredemption rate low include consumers not needing or wanting the productadvertised, consumers not bothering to clip coupons, losing clippedcoupons or leaving them behind on shopping trips, lack of 100%distribution of newspapers, overcouponing within specific areas, andunavailability of new products when the coupon is issued.

[0009] Free standing inserts currently represents the largest share ofthe coupon distribution industry, roughly 80.2%. On average,manufacturers who use FSIs for coupon distribution, spend approximately$0.92 per coupon redeemed, which is the lowest redeemed cost per couponredeemed when compared with other current coupon distribution methods.FSI coupon distribution results in high costs per coupon because of theshear complexity of and volume of materials involved in coupondistribution and redemption. Charges to manufacturers by FSI producerscover set-up, paper, printing, freight, newspaper insertion costs, salesand marketing, overhead and profit.

[0010] Direct mail coupons accounted for approximately 4.4% of coupondistribution in 1992. Direct mail coupons may be issued as part of anationwide campaign or a regional campaign, may be cooperative or solo,and may be mass, zip-code/lifestyle/lifestage segmented or householdtargeted. Regional direct mail coupons are more common, and are usuallylimited to marketing the products and/or services of local vendors.Companies who practice database marketing make use of direct mailcampaigns for delivering targeted incentives.

[0011] Run-of-Press (“ROP”) Coupons accounted for 4.1% of the couponsdistributed in 1992. These coupons consist primarily of stand alonenewspaper advertisements with clip-out coupons. Often theseadvertisements are specifically placed to coincide with a relevantfeature article. This form or coupon is marketed directly or throughthird party coupon issuers who have the nationwide newspaperdistribution channels through which to place ROP coupons.

[0012] In/on pack coupons accounted for 3.5% of the coupons distributedin 1992. On pack coupons consist of an attached coupon which is removedand redeemed at the cash register at the time of purchase. In packcoupons are found within the product and act as an incentive tocustomers to repurchase the same product. It is estimated that theactual cost per in/on pack coupon redeemed is significantly less thanthat associated with other coupon distribution methods. Most on-packcoupons are redeemed as customers pay for their purchases. However, thisalso means that all items are sold at the coupon discount, lowering amanufacturer's overall revenues per product more so than other types ofcoupons.

[0013] In 1992, various other coupon distribution methods represented 5%of coupons distributed. Two important coupon distribution methods inthis category include shelf distribution and custom prepared coupondistribution. Thousands of stores use coupon dispensers which areattached to a product's shelf. Customers can pull out one coupon fromthe dispenser for the product advertised. This method of coupondistribution is designed to reach the consumer at the point of making apurchase decision, and has a redemption rate of approximately 18%.

[0014] Check-out coupons are printed at the check-out by a printerinstalled at the cash register. A computer analyzes the purchases madeby each customer, and can print competitor's coupons or other couponsrelated to items in the current purchase. This system has a couponredemption rate of approximately 9%.

[0015] The coupon industry expends a great deal of resources in marketresearch, printing, issuing, distributing and redeeming coupons, yetproduces an extremely low redemption rate. This is attributed to thehaphazard systems used by most consumers of manually clipping, filing,sorting through, and ultimately using the coupons, and to the high costassociated with targeting coupons to each consumer.

[0016] Attempts have been made in the prior art to meet the needs of thecoupon industry and the consumer. U.S. Pat. No. 5,249,044 to Von Kohorndescribes a television-based coupon reception system wherein couponinformation is transmitted along with program information to a broadcastaudience. A member of the audience can generate a coupon for subsequentredemption at a store.

[0017] U.S. Pat. Nos. 5,285,278 and 5,287,181 to Holman also teach atelevision-based coupon reception system. Coupon information is encodedinto a television broadcast signal and decoded at the consumer'stelevision by circuitry similar to that used for closed-captionbroadcast decoding. The extracted coupon information is then recorded ona medium such as a magnetic stripe card or a microprocessor-based “smartcard”. The user can then present the medium at the supermarket in orderto automatically receive the appropriate discount

[0018] U.S. Pat. No. 5,185,695 to Pruchniki discloses an electronicpaperless coupon system which obviates the need for a paper coupon inorder to save printing, processing and clearinghouse costs as well aseliminating counterfeiting. Coupon redemption information is transmittedfrom a central system to local retailers, where coupon signs are placednear the related item. The discount is automatically applied at thepoint of sale without the need for the consumer to present a papercoupon.

[0019] U.S. Pat. No. 5,176,224 to Spector teaches a closed-loop couponsystem which consists of a kiosk type printer station located at aretail store. The kiosk is linked to the manufacturer(s) in order toobtain specific coupon information. The consumer selects the desiredcoupon at the kiosk, and the coupon is printed and dispensed. Theconsumer presents the coupon at the register, where the discount isapplied and the discount transaction data is transmitted back to themanufacturer.

[0020] U.S. Pat. No. 4,674,041 to Lemon et al. discloses a system withremotely located coupon printing stations capable of limiting the numberof coupons printed in a given time period. Each coupon station has adisplay for indicating the available coupons, selection means to allowthe consumer to choose the desired coupon, and a coupon printer. Thesystem disables display of a particular coupon when a preselected couponlimit has been reached.

[0021] While these aforementioned prior art attempts at providingcouponing systems are useful in their own right, they fail to providefor a secure and interactive coupon generation system in which the usercan request, select, store, manipulate and print coupons as desired, inwhich user-specific information such as demographic data and datarepresentative of those coupons so requested, selected, printed andactually used may be provided back to the coupon issuer and distributorfor more efficient coupon targeting in subsequent coupon issuance anddistribution.

[0022] It is therefore an object of the present invention to providesuch a coupon distribution system which overcomes the aforementionedproblems and shortcomings of the prior art.

[0023] It is an object of the present invention to provide an electroniccoupon distribution system which can be easily accessed by masses ofconsumers by using a readily available personal computer rather thanneeding to purchase special-purpose equipment.

[0024] It is a further object of the present invention to provide suchan electronic coupon distribution system which allows a user to requesttransmission of coupon data and select, store, manipulate and printcoupons from such coupon data.

[0025] It is a further object of the present invention to provide suchan electronic coupon distribution system which allows the coupon issuingcompanies to access valuable information directly from the consumerwithout requiring specific and additional action by the consumer butrather by using the information from the user's personal computerregarding the consumer's selection, printing and actual redemption ofcoupons, as well as responses to demographic queries posed to the users.

[0026] It is a further object of the present invention to provide suchan electronic coupon distribution system which allows a consumer togenerate shopping lists associated with coupons selected and printed, inorder to simplify the shopping process and promote the use of productcoupons.

[0027] It is a further object of the present invention to provide suchan electronic coupon distribution system which allows for automaticdeletion of expired coupons in the user's computer database and themodification of redemption amounts of coupons in the user's database,both of which can be transparent to the user.

[0028] It is a still further object of the present invention to providea secure coupon system which generates unique coupons withuser-identifying data and allows the printing of a coupon only once,thus eliminating the possibility of fraud by both the consumer and theretailer.

[0029] It is a still further object of the invention to provide anefficient, low cost, zip-code/lifestyle/lifestage or household targetedcoupon distribution system to tailor the incentives to each user.

SUMMARY OF THE INVENTION

[0030] In accordance with these and other objects, provided is a systemfor distributing and generating at a remote site product redemptioncoupons comprising a centrally located repository of electronicallystored product redemption coupon data, transmission means operativelyassociated with said centrally located repository for providing datacommunication between said repository and a plurality of remote usercomputers, and a remote user computer operatively associated with saidtransmission means. The remote user computer in the present inventioncomprises interface means for providing user interaction with thecentrally located repository, a memory, and a coupon data managementprogram. The coupon data management program is implemented by thecomputer for requesting coupon data from the centrally locatedrepository, for storing in the memory coupon data transmitted from thecentrally located repository, and for generating printable coupon datafrom the stored coupon data. The remote user computer also comprises acoupon output buffer operatively associated with the data managementprogram for storing the printable coupon data generated by said coupondata management program.

[0031] The present invention additionally comprises a printer forprinting product redemption coupons from the printable coupon datastored in the coupon output buffer. Alternatively, the system may enablethe user to transmit electronically the printable coupon data from thecoupon output buffer to the centrally located repository or directly tothe retailer for electronic coupon redemption.

[0032] As a result of the present invention, a user of the remotecomputer is able to request coupon data to be transmitted from saidcentrally located repository, and the user is able to instruct hiscomputer to print or electronically transfer product redemption couponsgenerated from the transmitted coupon data. In particular, the user'scomputer assembles product redemption coupons for printing by using twodata components; (1) fixed coupon data which is transmitted to theuser's computer during an initialization or “sign-up” process and whichremains stored on the user's computer for subsequent coupon generation,and (2) variable coupon data which is transmitted to the user's computerwhenever he requests coupon data from the central repository.

[0033] Additionally, the coupon data management program of the presentinvention operates in conjunction with the remote computer to allow theuser to select and store certain desired coupon data from the coupondata transmitted by the centrally located repository and print couponsas selected. The coupon data management program also allows the user togenerate a shopping list which is correlated to the coupons printed forsubsequent redemption.

[0034] In the present invention, the data exchange capabilities providedby the transmission medium between the remote computer and the centralrepository allow the automatic transfer of valuable information from theremote computer to the central repository and, ultimately, to the coupondistributing and issuing centers. Information related to the couponsselected and printed can be supplied to the coupon distributors andissuers, which can also use information obtained from the various retailstores as to which coupons were actually redeemed in order to moreintelligently market subsequent coupons and target coupon issuance in amore cost effective manner.

[0035] The data exchange capabilities are further advantageouslyutilized in the present invention to allow, via the central repository,the updating of coupon data stored in the user's remote computer withoutrequired interaction from the user if the user is online. In particular,the central repository can delete expired coupons from the remotecomputer's coupon database and can vary the amount of redemption valueof a non-expired coupon if so desired. The capability for the updatingand deleting of coupons within a user's computer is programmed in theuser's computer such that no further interaction with the centralrepository is required for such coupons to be deleted or updated.

[0036] Finally, the present invention provides for secure coupongeneration by allowing the printing of a particular coupon only once.Further, and quite importantly, the present invention provides for theprinting on each coupon of certain user-specific data, thus making eachcoupon printed unique. Thus, two different users with access to printinga particular coupon will each print coupons with the same product,discount, and expiration date data, yet each will be unique sinceprinted thereon will be user-specific data, preferably in the form of auser-specific bar code. Thus, any attempts to duplicate via photocopyingtechniques any particular coupon will be discouraged since the couponredemption center will detect when a particular coupon has beenredeemed, will identify the user who redeems a particular coupon, andwill disallow any attempt at redemption of a second coupon withidentical product and user-specific data.

BRIEF DESCRIPTION OF THE DRAWING

[0037]FIG. 1 is a block diagram schematic of the system of the preferredembodiment for the electronic distribution of coupons.

[0038]FIG. 2 is a detailed block diagram of the remote personal computerof FIG. 1 configured in accordance with the present invention.

[0039]FIG. 3 illustrates exemplary data field formats of the electroniccoupon data as implemented in the present invention.

[0040]FIGS. 4a and 4 b is a pictorial representations of the online andoffline display screens, respectively, which are exhibited to a user inthe present invention.

[0041]FIG. 5 is a diagram of a printed coupon resulting from theelectronic distribution in accordance with the present invention.

[0042]FIG. 6 is a schematic block diagram illustrating the mainfunctional areas serviced by the online service provider of thepreferred embodiment system.

[0043]FIG. 7 is a diagram of the use of an external cue to prompt accessby the user of the system.

[0044]FIG. 8 is a block diagram of an alternative embodiment of thepresent invention in which data is transmitted between the centralrepository and personal computer by satellite.

[0045]FIG. 9 is a flowchart of the operation of the present invention.

[0046]FIG. 10 is a schematic block diagram of the implementation of thecoupon data package generation.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT

[0047] Referring to the system block diagram of FIG. 1 and the flowchartof FIG. 9, the electronic coupon distribution system of the preferredembodiment comprises a central located repository of electronicallystored coupon data, which in the preferred embodiment is an onlineservice provider 2. The term online service provider refers herein toany computer-based information service provider which is accessible by aremote personal computer user via a communications data link such as thepublic switched telephone network (PSTN) or the like, such as PRODIGY,COMPUSERVE, or AMERICA ONLINE. In addition, it is contemplated that theelectronic coupon data distribution may be carried out by connection toany readily accessible Internet site such as the World Wide Web.Referring to FIG. 8, it is further contemplated that electronic coupondistribution may also be carried out via digital satellite communicationlinks, thus avoiding the need for hardwired (i.e. PSTN) connectivitybetween the repository and the remote user computer. Thus, any centrallylocated computer system which is accessible to the public by anytransmission means is contemplated as being within the scope of thisinvention. As used herein, the term “user” denotes an individual user ora household of users linked through one account.

[0048] The online service provider has stored in its database 40 (seeFIGS. 6 and 10) various packages of electronic coupon data, the contentof which will be further described below. The electronic coupon data isprovided, by a coupon distributor 16 or coupon issuer 14, by any ofvarious means such as electronic transmission via the PSTN or satellitedata exchange. The online service provider also stores in a demographicdata file 42 user-specific data, including coupons selected data,coupons deleted data, coupons printed data and user demographics, aswill be described below, for subsequent transmission to a coupondistributor 16. The coupon distributor 16 will utilize the user-specificdata and coupon redemption data in compiling subsequent coupon packagestargeted specifically at certain user categories.

[0049] The online service provider 2 is connected with the data link 4and is thus accessible by any remote personal computer 6 having a datacommunications interface 20 such as a modem (see FIG. 2). The onlineservice provider communicates with the personal computer 6 in order totransmit requested coupon data, and also in order to receive couponrequests and the user-specific data mentioned above.

[0050] The remote personal computer 6 has connected thereto a printer 8,which may be any type of computer printer capable of printing graphics.The printer 8 is instructed by the coupon data management routines 32stored in the computer 6 in order to print printed coupons 18, as willbe described in detail below.

[0051] The printed coupons 18 are used in the normal fashion by aconsumer when shopping at a desired retail store 10. That is, thecoupons 18 are presented to a product checkout station 11 along with theassociated products for purchase, and the discount amount shown on thecoupon 18 is credited to the consumer at the point of sale. The redeemedcoupons 18 are transmitted to a coupon redemption center 13 where theyare electronically read, and user-specific data is stored in a couponredemption database 12.

[0052] In addition to the usual coupon information found in prior artcoupons (e.g. redemption amount, company and product name, expirationdate, etc.), the coupons 18 of the preferred embodiment of the presentinvention contain user-specific data in the form of a unique user barcode 90, as shown graphically in FIG. 5. The user bar code 90 is encodedwith user-specific information such as the user name and/or other uniqueidentification criteria such as a social security number or onlineservice address. This information renders each printed coupon 18 unique,since an otherwise similar coupon presented by a different consumer willcomprise a different user bar code 90. The use of a unique coupon 18 isbut one aspect of the secure nature of the present invention as will bedescribed in detail below.

[0053] The coupon redemption center 13 receives from a number of stores10 the coupons redeemed, verifies the value of the redeemed coupons,determines the identification of users who redeemed the coupons, anddistributes the information read from the coupons 18 to the individualcoupon issuer 14 and to the coupon distributor 16. In particular,information regarding the redemption amount and the redeeming store 10is forwarded to the particular coupon issuer 14 named on the coupon 18,which then credits the redeeming store 10 with the total amount ofdiscounts given. Of particular value in the present invention is thedistribution of user-specific data to the coupon distribution center 16,which collates such user information and performs marketing analysis viaa marketing analysis means 17 in order to compile subsequent couponpackages targeted specifically at certain user categories. The coupondistribution center 16 utilizes the user-specific redemption data alongwith user-specific demographic data supplied by the online serviceprovider 2 in order to compile subsequent coupon data download packagesfor use by consumers once again.

[0054] An online display screen 60 is shown in FIG. 4a, which isprovided to a user on a display 24 of his remote computer 6 whenever heis in online communication with the service provider 2. The onlinedisplay screen 60 comprises a join service function button 62, adownload coupons function button 64, a help function button 66, and anonline communications button 68. When the user desires to initiallyregister for the electronic coupon distribution service, he selects thejoin service function button 62 which initiates a dialog with the onlineservice provider 2 in order to request certain demographic data from theuser which will be used to target specific coupon data packages forsubsequent downloading. The user has the option of providing therequested information if he so desires. In addition, an offline couponmanagement program is transmitted electronically to the user's computer6 for subsequent coupon data requesting, downloading and processing.

[0055]FIG. 6 illustrates the functional aspects of the online serviceprovider 2 in the preferred embodiment of the present invention. Themain features provided by the online service provider 2 are the couponpackages file 40, the demographic data file 42, the onlinecommunications server 44, and the help file 46. Each of theaforementioned features communicates with the user via the datacommunications interface 48.

[0056] The coupon packages file 40 comprises electronic coupon data andother types of advertising materials supplied by the various couponissuers 14 through the coupon distributor 16. Individual users' coupondata packages are drawn from this file based on demographic data andhistoric buying profiles stored in the demographic data file 42.Advertisements may consist of graphics, text, recipes, competitions orother inducements or a combination thereof.

[0057] After joining the electronic coupon service, the user can order apackage of electronic coupons from the online service provider 2 byselecting the download coupon function button 64. When this button isselected, commands are generated and transmitted via the datacommunications interface 20, through the data link 4, and up to thecoupon package file 40 resident at the online service provider 2. Therequested coupon data package and associated advertising materials aretransmitted by the online service provider 2 to the personal computer 6,where it is stored in the downloaded coupon data file 30 a in the coupondatabase 30.

[0058] The demographic data file 42 contains data representative ofdemographic inquiries presented to a user at the time that the userrequests a download of coupon data from the coupon package data file 40,as well as data representative of the users' responses thereto.

[0059] The online communication server 44 is accessed by the userselecting the online communication button 68. The online communicationserver is a bulletin board type file where users can post messages to acoupon distributor or issuer regarding any issue of interest. Themessage data is transferred to the appropriate destination by the onlineservice provider 2, which also collects the responses thereto and poststhem on the online communication server 44, thus allowing the user tofetch the response when logged on at a subsequent time.

[0060] By selecting the help function button 66, the help file 46 isused as a means for providing standard help and other useful informationto a user.

[0061] Referring to FIG. 2, the remote personal computer 6 of thepreferred embodiment comprises a data communications interface 20 (suchas a modem) for connecting the computer to the data link 4 (such as aPSTN), a user input device 22 such as a keyboard and mouse or other typepointing device, a display 24, and a processor 26, all of which arecommon to personal computers and are well known in the art. The computer6 also comprises an output buffer 28, which typically resides in randomaccess memory. The computer 6 is configured to operate in accordancewith the present invention via a coupon database file 30 and an offlinecoupon data management routine file 32 loaded onto a fixed memory suchas a hard disk drive. All of these internal components and files areconnected to a data bus 21 for communication therebetween in accordancewith techniques well known in the art.

[0062] The coupon database file 30 is segmented into various sections asshown in the memory map of FIG. 2. The coupon database of the preferredembodiment comprises downloaded coupon data 30 a, which is the entirecoupon data package downloaded from the online service provider 2;selected coupon data 30 b, which is a subset of the downloaded data andrepresents specific coupons electronically “clipped” and stored therein;sorted coupon data 30 c, which is selected coupon data sorted inaccordance with a particular set of criteria (e.g. all fruits together,then all dairy products, etc.); fixed coupon parameters anduser-specific data 30 d, which is certain unvarying data used inprinting the coupons as will be described in detail below; andstore-specific data 30 e, which is information regarding the productarrangement in a certain retail store 10 which will allow the user toprepare a shopping list tailored to the particular store.

[0063] The offline coupon data management routines 32 are executed bythe processor 26 in conjunction with the coupon database 30 in order torequest, obtain, store, select, sort, and print coupons as desired. Theoffline coupon data management routines 32 are executed by selecting adesired function button 52, 54, 56, or 58 as shown in the offlinedisplay screen 50 in FIG. 4b. The offline display screen 50 is shown onthe display 24 when the user runs the coupon data management program onhis or her personal computer 6. The offline coupon data managementroutines 32 are executed in an offline fashion; that is, the user doesnot need to first be in online communication with the service provider2. If a particular function button 52, 54, 56, or 58 chosen by the userinitiates a routine 32 which requires online communication, that routinewill initiate, control and terminate an online session with the serviceprovider 2 automatically.

[0064] The request coupon download routine 32 a is executed when theuser desires to order a package of electronic coupons from the onlineservice provider 2. This routine is called when the user selects thedownload coupon function button 54. When this routine is called,commands generated by this routine are transmitted via the datacommunications interface 20, through the data link 4, and up to thecoupon package file 40 resident at the online service provider 2. Therequested coupon data package and associated advertising materials aretransmitted by the online service provider 2 to the personal computer 6,where it is stored in the downloaded coupon data file 30 a in the coupondatabase 30.

[0065] Prior to downloading the requested coupon data package to thecomputer 6, the demographic data file 42 provides certain demographicqueries to the user in order to obtain valuable information for use inmarketing analysis and subsequent coupon package generation. The users'responses to the queries are transmitted to the online service provider2 and stored in the demographic data file 42 for subsequent processing.

[0066] The user may select the view function button 52 in order to viewthe coupons and advertisements previously downloaded. This selectionwill call the view coupons routine 32 b, which will access thedownloaded coupon data file 30 a and present it to the user via thedisplay 24.

[0067] While viewing the coupons and advertisement, the user may selecta desired coupon for further sorting, storage, printing or deletingand/or shopping list generation by selecting or “clipping” the couponwith the mouse or keyboard input 22. Coupons are clipped by scrollingthrough related advertisements. In order to avoid the need for clipping,the user may print or delete a desired coupon. The coupons selected inthis function are stored for further processing in the selected coupondata file 30 b.

[0068] The coupon file function button 56 enables the user to performseveral operations on his selected coupon data file 30 b. The user mayview the coupons selected (from the selected coupon data file 30 b), andmay choose any of them for printing. Further, a sortation option isprovided which logically sorts, by category and subcategory, the couponsstored. Thus, the management program automatically places all the dairycoupons together, and may also place all the milk coupons togetherwithin the dairy category. This is carried out by the coupon sortationroutine 32 c, and is akin to the manual filing system used in the priorart and will aid the user in viewing his selected but unprinted couponsin an efficient manner. The sorted coupons may be loaded into the sortedcoupon data file 30 c for subsequent viewing and printing. The user mayoptionally sort the coupons manually by his own classification.

[0069] The shopping list function button 58 calls the shopping listgeneration routine 32 g when selected by the user. This routine willallow the user to generate a list from a menu presented on the screenwhichever items the user desires to purchase, and the user can storeand/or print this list as desired. The items on the list are comparedagainst coupon data stored in the coupon database 30 and the user isinformed of their existence. The user may then print out those couponsalong with the shopping list. Alternatively, the user may select certaincoupons for printing, and the item associated therewith is automaticallyplaced on the shopping list. Thus, in either fashion, the user'sshopping list generation and coupon “clipping” tasks are convenientlymerged in a timesaving manner.

[0070] The shopping list generation routine 32 g may also advantageouslyuse data stored in the store-specific data file 30 e in order to preparea shopping list tailored to an individual retail store. Thus, dataregarding the layout of the store, the food items available at thestore, and the like, are used by the list generation routine 32 g inorder to organize the purchase items accordingly. The data stored in thestore-specific data file 30 e may be obtained by any of several methods;by downloading from the online service provider 2, by inputting via afloppy disk memory supplied by the store, or even manually input by theuser. Data for different stores can be kept in the file 30 e and theuser simply selects the store he intends on using at that particulartime. The user may select a standard pre-programmed shopping list, hislast generated shopping list, or a blank shopping list from which tocommence his shopping list preparation.

[0071] The coupon upload routine 32 cc is called automatically andwithout user request whenever the user requests a coupon downloadpackage from the online service provider 2. A record is kept by theupload routine 32 cc indicative of each coupon selected by the user andeach coupon printed by the user. This record is sent to the demographicdata file 42 in the online service provider 2, and is used for marketinganalysis along with data regarding which coupons were actually redeemed,which information is obtained from the manufacturers' redemption agencyor center.

[0072] Coupons are printed by the printable coupon data generationroutine 32 d, which is invoked by a user when he selects a print commandfrom the coupon file function 56. This routine obtains data from twosources in the coupon database 30: the fixed coupon parameters anduser-specific data file 30 d, and the variable coupon data associatedwith the particular coupon selected for printing.

[0073] Referring to FIG. 3, the data format of the fixed couponparameters and user-specific data are set forth and include predefinedborder graphics which are the same for every coupon printed, redemptioninstructions, and a user identification bar code number. The useridentification bar code number is a unique number assigned to that user,e.g. his social security number or online identification number. Thisnumber will be encoded by the printable coupon data generation routine32 d and printed as a bar code 90 on each coupon 18 printed for theparticular user. This information will thus be obtained by the couponredemption center and provided to the coupon distributor 16 fordemographic analysis and the like.

[0074] The unique user bar code 90 also renders the electronic couponsystem of the present invention secure and virtually fraud-proof.Although a user is able to print out a particular coupon 18 only once(to be described in detail below), the coupon issuer 14 could still bedefrauded by a user or retailer who might photocopy a printed couponnumerous times and fraudulently and repeatedly present it forredemption. However, in accordance with the present invention, eachcoupon printed by a user is unique, and the scanning of a couponpresented for redemption will be stored at the coupon redemption center.Thus, the coupon issuer will know if a particular user has redeemed aparticular coupon and thus disallow further redemption of a photocopiedcoupon bearing the same indicia.

[0075] Referring again to FIG. 3, the data format of the variable couponparameters are set forth and include the coupon expiration date, theredemption amount, the company and product information, the UPC code,the redemption address, and the description of the coupon offer.

[0076] Thus, the printable coupon data generation routine 32 d combinesall this information and generates a record indicative of the uniquecoupon to be printed. This record is temporarily stored in the outputbuffer 28, where it is subsequently sent to the printer 8 for printing.In the alternative, the coupon may be redeemed electronically by sendingthe coupon data in the output buffer via the data communicationsinterface 20 back to the online service provider 2. This is especiallyuseful in the “electronic shopping mall” environment now found in manyonline services. The electronic coupon data could also be routed via thedata communications interface 20 to a retail store where the user willbe shopping, where the coupon data is held in a buffer pending purchaseby the user of the matching product.

[0077] As described above, the electronic coupon distribution system ofthe present invention allows the printing of a particular coupon onlyonce, thus providing for security and guarding against fraudulentredemption. This is accomplished by the coupon deletion routine 32 e,which is called whenever a coupon is printed and deletes the coupon fromthe database 30 or renders it unprintable by setting an appropriateflag. In addition, the coupon deletion routine 32 e allows for automaticdeletion of expired coupons by periodically checking the expiration datefield of each coupon against a real-time clock found in the computer 6.Optionally, the user may voluntarily delete any coupon which is expiredif the real-time clock is not set to the correct date. For the user'sconvenience, the online service provider 2 can check the system clock ofthe user's computer 6 during a communications session and, if the dateis incorrect, can ask the user if he would like the date adjustedautomatically.

[0078] Since the actual expiration date is always printed as part of thecoupon, the function of deleting expired coupon data from the user'scomputer 6 is for the convenience of the user rather than for securitypurposes.

[0079] The system of the present invention also allows fortime-sensitive deletion of certain coupon data from the user computer 6which is unrelated to the expiration date. That is, certain coupon datamay be automatically deleted from the user's computer after, e.g., onemonth, notwithstanding that the coupon, if printed, might have anexpiration date in six months. This feature is included to prompt userswho know of the time-sensitive autodeletion to promptly print (and use)coupons rather than risk having them deleted from their database.

[0080] The coupon management program also can vary the redemption valueof any coupon already downloaded to the user's computer 6 without theneed for specific user interaction. A coupon variation routine 32 f iscalled which aids in this task. Again, any time that a user initiates adownload of coupon data, the on-line service provider 2 can updateredemption amounts for coupons whose issuers have decided to change thediscount amount.

[0081] Referring to FIG. 5, the secure coupon 70 generated and printedin the preferred embodiment is illustrated in detail. The secure coupon70 comprises the following fixed components taken from the fixed couponparameter and user-specific data file 30 d: border graphics 72,redemption instructions 88, and user identification bar code 90. Thesecure coupon 70 also comprises the following variable components whichchange for each coupon selected: expiration date 78, redemption amount74, description of the offer 76, company and/or product information 80,the item's UPC number 82 and the associated UPC bar code 84, and theredemption address 86.

[0082] Referring to FIG. 10, the generation of coupon data packages bythe coupon distributor 16 will be explained. The information collectedby the coupon distributor 16 from the online service provider 2regarding the coupon data selected by the user, the coupon data printedby the user, and the requested demographic information is stored in adatabase 11. The database 11 also stores information from the couponredemption center 13 regarding the coupons actually redeemed by theuser. The database 11 further stores information regarding all couponswhich are made available by the various coupon issuers 14 from which itwill generate coupon data packages for subsequent downloading to users.

[0083] The information stored in the database 11 is input to themarketing and targeting analysis means 17, which carries out thefunction of analyzing the aforementioned, information in a manner knownin the art to arrive at different coupon packages. That is, it may bedetermined by the analysis means 17 that users with dogs in theirhousehold (which is known by the demographic responses) will get acertain package comprising dog food coupons. It may be furtherdetermined that users who select, print and redeem dog food coupons ofBrand X will get coupons issued by Brand Y, or will get only low valuecoupons since they are already dog food coupon users, etc. That is,depending on the marketing and targeting criteria and objectives, theanalysis means will generate coupon packages as desired.

[0084] Thus, the analysis means generates a number of differing coupondata packages for transmittal to the online service provider 2. Theanalysis means also provides specific mapping information which willinstruct the online service provider as to which user should be providedwith which package(s). For example, user 1 may be mapped to coupon datapackages 2 and 3; user no. 2 to packages 3 and 6, etc. This mappingfunction may be carried out by the coupon distributor and provided tothe online service provider at regular intervals, e.g. once per week.Thus, the coupon selection, printing and redemption habits may beanalyzed over a time period and used to determine the subsequenttargeted packages.

[0085] In addition to mapping certain coupon data packages to certainusers, certain advertising packages may be mapped to the users in asimilar fashion.

[0086] In accordance with the present invention, the marketing analysis,coupon packaging, and coupon package distribution functions carried outby the coupon distributor 16 may be carried out at the central datarepository, i.e. Internet web site. Further, the coupon redemption anduser redemption information processing functions individually carriedout by the coupon redemption center 13 and the individual retail stores10 may be combined into a single redemption center, as shown by thedotted line in FIG. 1. The physical layout of the functions within thesystem of the present invention is a matter a practicality and choice ofthe systems designer and does not impact the utility of the presentinvention.

[0087] In an alternative embodiment of the present invention, the useris provided with a visual or auditory stimulus or cue to suggest anaccess of the electronic coupon distribution system. Referring to FIG.7, a message or logo may be included along with the advertising materialnormally provided on television, in the newspapers, and the like. Thiswill indicate to a user that he should access the online serviceprovider 2 in order to obtain coupon data related to the advertisedproduct. The availability of the coupon could be time-sensitive, whichwould provide further incentive to the user to use the system in aprompt and efficient manner. When the radio media is used, a tonal orspoken cue may be included during the advertising message to accomplishthe same result.

[0088] The amount of redemption discount included with a coupondownloaded to a user may be varied depending on certain demographicinformation that the system has about the user. For instance, the systemmay provide a certain value for known users of a brand (whichinformation it will obtain by demographic inquiry or through previousredemptions in the system), and it may provider a higher discount inorder to provide an incentive to users of a competitive brand. Theability to vary the value of a discount offer in accordance with suchdemographic and usage data is a unique advantage offered by the systemof the present invention and heretofore unavailable in the prior art.

[0089] Referring to FIG. 8, an alternative means of communicationbetween the online service provider 2 or the coupon distributor 16 andthe remote computer 6 is illustrated. A satellite communicationsapparatus 94 is advantageously used to provide a wireless data link 4.In this embodiment, the data communications interface 20 is a satelliteantenna dish or other transceiver unit which provides operativecommunication between the remote computer 6 and the satellite 94. Asimilar unit is located at the online service provider 2 in order forfull wireless data communications to be achieved.

[0090] The flowchart of FIG. 9 illustrates the flow of information inthe system of the present invention. The information flow illustratedtherein has been described in detail in connection with the implementingsystem.

[0091] In a further alternative embodiment of the present invention, thefunctions of the online service provider 2 are carried out at a site onthe Internet. That is, a user may access the coupon data repository byaccessing an appropriate Internet site. In this embodiment, thedownloaded coupon management routines are encoded with a unique useridentification number, which may be for example the user's e-mailInternet address. When the user requests coupon data packages to betransmitted, the user identification number is encrypted and sent to theInternet site along with the request. Appropriate routines areimplemented at the Internet site to decrypt the user's identificationnumber and compare it against a list of valid members in order to ensurethe validity of the user.

[0092] In another alternative embodiment of the present invention, allcoupon data management functions are carried out by the online serviceprovider 2 rather than by the offline coupon data management routines32. In this case, the speed of access of the online service provider 2must be high, for example on the order of 28.8 kbps. When high speedcommunications are used, the need for offline data manipulation iseliminated and all processing can be carried out in an efficient mannerwhile connected to the online provider 2.

1-46. Cancel
 47. A method of redeeming an electronic coupon in the course of an online transaction, said electronic coupon having a data structure resident in a computer-readable medium of a first computer processor unit, said data structure being transferable between computer-readable media of a plurality of computer processor units over a communications channel and including information sufficient for enabling one of said computer processor units to electronically redeem said electronic coupon in the course of said online transaction, the method comprising: A. establishing a connection between said first computer processor unit and a second computer processor unit; B. transferring said data structure resident in said computer-readable medium of said first computer processor unit to a computer-readable medium of said second computer processor unit over said communications channel; C. establishing a connection between said second computer processor unit and a further computer processor unit for the purpose of initiating said online transaction; D. in response to establishing a connection between said second computer processor unit and a further computer processor unit, said further computer processor unit detecting said data structure in said computer-readable medium of said second computer processor unit; E. automatically transferring said data structure information over said communications channel from said second computer processor unit to said further computer processor unit during said online transaction; and F. said further computer processor unit providing a benefit to said second computer processor unit based on said data structure information in the course of said online transaction.
 48. The method according to claim 47, further including the step of authenticating said electronic coupon as a function of said information, so as to prevent the use of a counterfeit coupon by said second computer processor unit.
 49. The method of claim 47, wherein said first computer processor unit and said further computer processor unit are the same computer processor unit. 